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City Suggests Adding a Revolving Loan Fund
The City of Galesburg has both what could be a good problem, and a bad problem to have, as it tries to help new and existing businesses.

City officials recently told the City Council that with 24 loans currently outstanding, and 10 more currently being worked on that could soon be brought to a vote, the three economic development funds are close to being, in their words, "tapped out."

City Manager Dane Bragg says part of the problem is that the loan process is different now than in the recent past.

"The type of prospects that come in to our community, much like any other community, have a different financing need than they did, say, two or three years ago." Bragg said. "That need is now not only to be able to locate sites and buildings and workforce, but it's also be able to locate financing pools in order to put those projects together."

Bragg says in other words, money for revolving loans become part of the deal, instead of something dealt with after-the-fact.

The city, while not yet ready to formally propose it, is suggesting a fourth revolving loan fund be established, that would deal with more of the what Bragg calls "venture capital"-type projects -- ones that don't necessarily fit the guidelines of two of the revolving loan funds, which are funded through the state.
02 27 10 by Newsroom
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